(Photo: Abhijit Bhatlekar/Mint)
(Photo: Abhijit Bhatlekar/Mint)

SAT sets aside NSE's 2017 order against OPG Securities in co-location case

  • NSE had suspended stock broker OPG Securities for six months in September 2017 as a trading member on all segments
  • OPG had subscribed the co-location server facility after it was introduced by NSE in 2009

NEW DELHI : Securities Appellate Tribunal (SAT) has set aside the NSE's 2017 order banning OPG Securities for six months and has asked the exchange to pass a fresh order in the matter.

The National Stock Exchange (NSE) had suspended stock broker OPG Securities for six months in September 2017 as a trading member on all segments after it found that OPG had used the secondary server instead of primary server without any valid reason in co-location facility.

The NSE had introduced co-location server at its premises in 2009 and OPG had subscribed the facility, according to the SAT order.

The use of secondary server was permitted only in case of failure of primary server and the NSE had already issued such directions, the SAT order said.

It conducted the forensic investigation by Deliotte Touche Tohmatsu LLP and the forensic report brought adverse findings against OPG, following which the exchange had passed the order in September 2017.

However, another forensic report by EY LLP in the same issue was submitted and OPG argued that the report depicts a different picture, the order said.

"In view of the fact that another forensic investigation report has come up it would be in the interest of justice that the impugned order be quashed and set aside and the matter be remanded to the respondent Stock Exchange to have a fresh look in the matter," SAT said in an order on Wednesday.

Besides, it directed the NSE to pass the order in six week after giving an opportunity to OPG Securities for hearing.

On Tuesday, Sebi had barred OPG Securities, its three directors for five years from accessing securities market and asked them to disgorge illegal gains of more than 15 crore in the NSE co-location facility case.

This story has been published from a wire agency feed without modifications to the text.

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